How to Get Started with Ecommerce ERP Integration
ERP, or enterprise resource planning, is a critical aspect of many businesses today. Integrating ERP with existing platforms is often the first step towards automating various company processes - from inventory management to customer relationship management, for example. Depending on your specific business needs, custom ERP development companies can provide tailored software solutions to optimize your daily operations.
What is Ecommerce ERP Integration?
Simply put, ecommerce ERP integration involves seamlessly connecting a company’s ecommerce website (the frontend) to its ERP system (the backend). This process ensures smooth data synchronization between the two platforms covering orders, products, customers and more. The key is to prevent data overlap and inaccuracies.
That said, ERP is in itself an extremely useful tool for ecommerce businesses. However, its true potential is unlocked when integrated with all the other existing systems of the company. Synergy is the key to streamlining business processes.
A smooth ecommerce ERP integration can dramatically reduce employee workload, preventing them from becoming overburdened with tasks that can be safely automated for enhanced efficiency. ERP integration can also be used to connect your ecommerce store with your inventory management system, accounting software, CRM, and more. This allows you to manage all aspects of your business from a single platform, which can save you time and money.
How To Integrate ERP With Ecommerce - Preparatory Steps
If you are wondering how to integrate ERP with your ecommerce website, the first step is to assess your organization’s current situation. This involves tracking key aspects of your operations to determine the most effective approach to implementing an ecommerce ERP system tailored to your business’s unique needs.
Identify all the processes
Identifying all the processes involved in running your ecommerce business is the crucial first step towards ecommerce ERP integration. Not leaving out any process is critical as it can cause hindrance in the process.
Identify critical data
In today’s ecommerce landscape, data lies at the very core of business operations. A huge amount of data is generated in the day-to-day business activities of an ecommerce platform. Out of all the data, identifying critical components that must be received accurately and promptly should be highlighted. The ERP integration should facilitate smooth and timely data transfer between different departments, tools, and processes.
Identify time-consuming processes
Out of the many processes of your ecommerce businesses, some processes will be more time-consuming and resource-intensive than others. Using ERP automation in such processes is a great way to streamline your ecommerce business.
Find out ROI
Estimating ROI before making any investment is a smart strategy. It is the same with ecommerce ERP integration. Calculating the existing expenses in salaries and labor costs and then comparing them with the expense of using ERP software will give you an accurate estimate of the ROI.
Types of ERP systems
There are 4 basic types of ERP systems that you should know about. The table below will give you a broad idea about each:
4 Core Types of ERP Systems |
On-premise ERP system
Customized and licensed systems maintained by the company on its own servers. | Cloud ERP system
Internet-based systems accessible anytime, anywhere with an internet connection. |
Hybrid ERP system
A combination of cloud-based and on-premise systems deployed across public and private clouds. | Multicloud ERP system
A combination of several third-party, cloud-based services and applications all integrated together. |
Steps Involved In Successful Ecommerce ERP Integration
Once you are done with preparation, you have to get to the steps that concern the implementation of ERP systems for ecommerce. It seems like a straightforward process, at least on paper. Of course, compatibility with legacy systems can prove to be an issue. But we’ll get to the challenges later. Let’s look at the steps:
Choose an ERP system that works
You might want to carry out extensive market research for this step. The key is to find an ERP system for ecommerce that meets all of your organizational goals. Though there are several options available on the market, including some very well-established names, they might not fully be able to meet your requirements.
Therefore, we suggest trying out custom ERP software as it can be specifically designed to cater to the unique demands and goals of your business. You can check out our guide on the key ways to choose the right custom ERP software for your business to get started.
Pick a middleware solution
They don’t tell you that but choosing a middleware solution can make it easier for you to integrate ecommerce platforms such as Shopify with ERP systems. The core purpose of middleware solutions is to automate the entire process, thus taking manual hassle out of it entirely.
Configure your integration process
Next, configure the integration process between your ERP system and ecommerce platform. This will likely require you to carry out complex steps such as defining workflows, setting up methods of data synchronization between the two as well as mapping data fields. Having an expert on-board is a good idea.
Test the integration process before deployment
Once the configuration is complete, test if your new set-up works as expected. Test workflows, verify data synchronization, train your employees and get their feedback. If you find any bottlenecks during testing, modify your integration accordingly. If the ecommerce ERP integration is seamless, consider it ready for deployment.
Key Benefits of ERP Integration
When we say the benefits of ERP integration are many, we are not exaggerating. Having the constant flow of data between your online store and your ERP system offers a seamless experience along with scalability and a significant reduction in human error. Let’s take a look at other advantages below:
Top 10 Advantages of Ecommerce ERP Integration |
1. Reduced operating costs
Manual input of data is expensive. Integration leads to the automatic syncing of all kinds of data - from shipping and product information to inventory count, thus cutting down operation costs. | 2. Lower occurrences of human error
The absence of manual processes involved in the operation of your ecommerce store reduces chances of human error. Instead, you get error-free information that works across all your systems without overlap. |
3. Improved fulfillment speeds
Integrated systems offer the latest information, which can be used to remove manual bottlenecks in order fulfillment, thus speeding up the whole delivery process considerably. | 4. Reduced inventory costs
With each order placed, you get real-time inventory count, making managing your inventory easier while accurately managing the supply chain. |
5. Data consistency
Integration eliminates the need to compare both systems to check if they have updated information. It maintains data consistency across all platforms. | 6. No data silos
Data silos segregate important data requiring manual interference. However, integration allows for seamless data flow and adjustments as per your daily operations. |
7. Sync all across
Seamless ecommerce ERP integration allows for easy management of online as well as offline stores by updating inventory count and order information across platforms. | 8. Improved scalability
ERP systems for ecommerce are designed to be scalable, easily adjusting to large orders, busy seasons or even the unanticipated growth of new customers. |
9. Higher sales
With ERP systems in place, customers get access to updated information on ecommerce stores along with a seamless shopping experience, which boosts sales. | 10. Enhanced customer experience
ERP integration allows customers to get stock alerts, access order status and track shipments - all of which increase customer satisfaction and foster customer loyalty. |
ERP Integration: Common Challenges With Solutions
The integration of an ERP system into an online store does not come without its own set of challenges. It’s not exactly simple. Period. But the good news is that most of the challenges you face - whether it’s human error or problems on the software front - can be overcome. Let us walk you through common ERP integration challenges and their solutions:
Insufficient IT support
Integration of ERP systems with your online storefront is a complex affair that requires proper IT support - both in terms of resources and tools. Insufficient support in this department can adversely affect the implementation process.
An easy way out of this is to assess your current IT situation, and make adjustments accordingly so you don’t face any stumbling blocks on this front.
Complexity of ERP systems
Integration is always a complex process because it involves connecting two or more systems. Merging the ERP ecosystem with your online store’s ecosystem can pose issues because each has its own sophisticated architecture.
That said, if you have expert IT support and software engineers guiding you through every step of the way, you might be able to overcome these complexities with only a few hiccups in between.
Data inconsistency
The occurrence of data silos and the information duplicity they bring may prevent you from using your integrated system efficiently. Furthermore, multiple data types can add to the complexity, thus impacting the accuracy of data you end up with.
One way to fix this is to simplify your data sets as much as possible. Data standardization can prevent duplicity, ensuring that the data you end up with is both consolidated and accurate.
Scaling issues
If your existing ecommerce system is unable to handle the data flow requirements of ERP integration, that can be a problem. It can hinder scalability and cause a slowdown in your daily operations. The simplest thing to do is to update your existing online store system before implementing ERP.
Overshooting budget
Going over your budget when implementing integration is far from an anomaly. However, it’s easily fixable. All you have to do is plan in advance while accommodating for unexpected expenses.
Best Ecommerce ERP System Integration Practices
Sure, challenges abound when it comes to integration of ecommerce ERP systems. But you can overcome them by sticking to the following best practices as much as you can:
Select the right ERP solution: Take your time to evaluate all options carefully and ensure compatibility with existing systems. The ERP system you choose should align with your business’s goals and ambitions.
Involve stakeholders: All key stakeholders should be up-to-date with the integration process for a successful implementation. Explain to them how ERP systems for ecommerce can help business by removing hurdles and increasing productivity. It’s better to get a green flag via transparent communication before carrying out the implementation process.
Keep it secure: Your integration solution should offer the kind of data security your business needs. Ensure your chosen solution follows strict security protocols and has data compliance measures in place.
Clean your data pre-integration: Data cleaning prior to integration ensures there’s no duplication or redundancy of data once your ecommerce ERP system has been implemented. This might be a time-consuming process but it won’t require a repeat anytime soon.
Find a solution that offers support: Your ERP system provider should ideally offer you round-the-clock support as that can help promptly troubleshoot and fix any issues that may arise during or after integration.
Best ERP Systems For Online Stores: Comparison Chart
Best ERP systems for online stores have their own feature sets that far surpass those offered by pre-configured ones. We are specifically talking about custom ERP, which brings with it many benefits. Check the comparison chart below and you’ll know what we are talking about:
CUSTOM ERP | PRE-CONFIGURED ERP |
| Exclusively designed for the particularities of your ecommerce business | Takes a general, broad-level one-size-fits-all approach |
| Tailored solutions that match your unique requirements and goals | Generic solutions that are not specific to any particular objectives |
| Freedom of choice in terms of features, functions and modules | Restricted to a standardized set of features that may not suit your business |
Conclusion
Custom ecommerce ERP integration can be the next big step in growing your business. While ERP integration poses challenges, its long-term benefits - reduced costs and increased efficiency, among others - make it a worthwhile investment.
Vestra Inet can help you out with custom ERP development for your ecommerce business. We are the leading custom software development company in Toronto with 20 years of experience in delivering quality software solutions. Contact us to start your ecommerce ERP integration journey today!
